Canadian Banks Forbid Customers Buying Cryptocurrency

April 13, 2018

Just few days ago BMO Financial Group (the Bank of Montreal) announced, it is to forbid its clients buying cryptocurrency with their credit and debit cards.

The Bank was not the first among major ones to go on the warpath against cryptocurrencies. Last month Toronto Dominion (TD Bank) blocked its customers from purchasing digital currencies. Lately Royal Bank of Canada (RBC), the country’s second largest asset bank, decided to allow cryptocurrency transactions “in limited circumstances” only though did not forbid online currency purchase for its clients.

As a result crypto investors have to seek for ever new ways to skirt traditional financial system. Thus for the last three weeks the LocalBitcoins P2P-platform has increased trading activity six times from $1.2 mln to $7.2 mln.

Cryptocurrency supporters assert, the ban may actually produce positive effects. Finally, digital currencies like Bitcoin are based on investors’ personal freedom. If they are forced to look for alternative routes to do their business they get independent though partially from the traditional financial system.